The markets opened the new year on the downside with the latest manufacturing report suggesting a stalled economy. The Dow lost 112 points to 13,152 while Nasdaq dropped 19 points to 2632.

On the upside

Washington Mutual (NYSE: WM) was one of the few financial services companies on the upside as the sector started the new year on a pessimistic note.

Suntech Power Holdings (NYSE: STP) signed a licensing deal to distribute solar-panel technology made by Akeena Solar (Nasdaq: AKNS) in Europe, Japan and Australia.

Positive outlook for gold prices boosted gold companies like Goldcorp (NYSE: GG).

On the downside

National City (NYSE: NCC) which operates one of the nation's largest banks in Midwest states announced plans to cut it dividend and eliminate jobs.

VeriFone Holdings (NYSE: PAY) expected more delays in its effort to file amended quarterly reports for 2007.

Shares of National CineMedia (Nasdaq: NCMI), a subsidiary of Regal Entertainment, fell on worries of lower demand for its advertising format.

In the broad market, declining issues outpaced advancers by a margin of 5 to 4 on the NYSE and by a margin of 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks fell 7 points to 758.